The Avalanche Foundation conveyed on Thursday that it received a $230 million investment through the private token sale of its AVAX cryptocurrency from a group led by Polychain and Three Arrows Capital.

R/Crypto Fund, CMS Holdings, Dragonfly, Lvna Capital, Collab+Currency, and a group of angel investors also participated in the investment round.

The Avalanche Foundation will use the amount to accelerate the growth of enterprise applications, decentralized finance or DeFi, and other use cases on the Avalanche public blockchain.

“We have been relying on the technology having great organic growth, and now it’s time to supercharge that growth. All the pieces are there,” said John Wu, the President of Ava Labs, a firm making it easy to launch decentralized finance applications on Avalanche.

In the past week, Avalanche’s native token, AVAX, has acquired a 65% gain, outperforming all other top 20 cryptocurrencies. With a market value of about $13.3 billion, it is currently the 14th-biggest crypto in the world. Avalanche, launched in September 2020, counts more than 225 projects building on the platform, including popular DeFi projects such as Tether, SushiSwap, Chainlink, Circle, and The Graph.

Emin Gün Sirer, the director at the Avalanche Foundation, said, “Avalanche has quickly turned promise and potential into real-world impact and value creation for DeFi users and developers. The community of builders rallying around the network is a testament to its competitive edge, and there is still so much potential yet to be tapped at the intersection of institutional and decentralized finance on Avalanche.

Sirer also stated, “When you have a war chest like this, it's a very comfortable situation to be in. We will certainly have partnership announcements coming up. I am really excited about the new unique deployments that are already in the pipeline.” Sirer told Forbes that to focus on Avalanche he had recently stepped down from his teaching position at Cornell University.

Rushali Das

CBW - External Analyst

INDIA